China's dream of growth could come to an end

China's dream of growth could come to an end
06 August 2020

The slow pace of economic recovery after Covid-19 in China creates an expectation of contraction in the Chinese economy for 2020. Economic Policy Expert Dr Aziz Hatipağaoğlu stated that the dream of sustainable growth that China has been aiming for years could come to an end.

*** This release is originally published in Turkish.
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ISTANBUL (TR) - The People's Republic of China, which shrank by 6.8 per cent in the first quarter of the year due to the impact of the new type of coronavirus epidemic, which stopped both production and consumption, grew by 3.2 per cent annually in the second quarter. The Chinese government has announced that it will not set a target for 2020 due to uncertainties stemming from the Kovid-19 pandemic. According to the results of a survey conducted in China and involving 3,300 commercial enterprises, the slow recovery in China after Covid-19 reveals that the prospect of a contraction in the Chinese economy has occurred for 2020.

“We have come to the end of the dream of growth”

Economic Policy Specialist Dr Aziz Hatipağaoğlu stated that the Chinese government, which has been targeting economic growth since 1992 as a result of the Chinese government's not setting targets and the expectation of the contraction of commercial enterprises, will enter a pause period and the dream of sustainable growth that China has targeted for years could come to an end.

On the other hand, the European Union (EU) Commission, apart from China, also announced that the economic crisis experienced due to the pandemic would cause a historical contraction. The Commission expects an 8.3 per cent economic contraction in EU countries by the end of the year.

"The momentum in foreign trade will continue with records in 2021"

Although the decline in the EU seems to be bad for Turkey, Hatipoğlu pointed out that this actually creates a great opportunity: ”The explanation is lower than the expectations of Turkey's inflation rate in July, the Istanbul Chamber of Industry in July PMI index in May and then from June to reach continued to rise also in July, 56.9 and Trade Minister Ruhsar Pekcan the month of July the export of a previous The heaviest period of the coronavirus (COVID-19) epidemic was successfully overcome with the announcement of an increase of 11.5 per cent compared to the month and reaching 15 billion 12 million dollars. In Turkey, private and public institutions can observe that there were no negative statements in the second half of 2020 with cooperation. The cavity of the hesitation of countries like China has considered the world's manufacturing factory has the power to turn Turkey. I foresee that the momentum in foreign trade will continue with records in 2021”

"We are in the era of stepping on the gas again"

Noting that the number of cases in the USA reaches the limit of 5 million, Hatipağaoğlu said, “The number of cases in India, which is considered as one of the new giants of technology, is about to exceed 2 million. The coronavirus exam is difficult for most countries.  The gap created by countries experiencing problems in production is at a level that can be covered by the high labour volume in Turkey. After the epidemic, we hope to overcome in a short time; it is time to hit the gas in the economy. Increasing the state-backed economic business relationship strengthening of relations with Turkey could be the shining star of the new world. "